New York, Jan 22, 2026, 14:26 EST — Regular session
- Shares climbed roughly 2.3% in afternoon trading following fourth-quarter results that showcased record client inflows
- Net interest revenue jumped over 25% this quarter, boosted by steady trading activity
- Attention now shifts to next week’s Fed decision and a shareholder vote linked to Schwab’s proposed Forge deal
Shares of The Charles Schwab Corporation climbed roughly 2.3%, hitting $104.15 during Thursday afternoon trading. The stock extended its rally following the firm’s report of record quarterly client inflows in its latest earnings release.
This move is significant since Schwab acts as a bellwether for retail trading and client cash positions. Both directly impact the firm’s revenue, particularly as rate expectations shift.
That rate story is back front and center. With uncertainty around the Federal Reserve’s next moves and broader geopolitical tensions, investors are rearranging portfolios. This swirl can drive up trading volumes but also muddies the outlook for interest income.
Charles Schwab’s quarterly net revenue jumped 19% to $6.34 billion, just shy of analyst forecasts of $6.37 billion, Reuters reported. Net income rose to $2.46 billion. Net interest revenue — the gap between earnings on assets and costs on liabilities — surged over 25% to $3.17 billion, boosted by active trading and increased interest income. (Reuters)
The company reported “core net new assets” — client inflows minus outflows, excluding market impact — hit a quarterly record $163.9 billion and reached $519.4 billion for 2025, driving total client assets to $11.90 trillion and client accounts to 46.5 million. Daily average trading volume jumped 31% to 8.3 million, while net interest margin expanded to 2.90%, up 57 basis points, or 0.57 percentage points. Schwab also confirmed it still expects the Forge Global deal to close in the first half of 2026. “Schwab delivered growth on all fronts in 2025,” CEO Rick Wurster said. CFO Mike Verdeschi added, “During 4Q25, we repurchased 29.2 million shares for $2.7 billion,” part of $11.8 billion in capital returned during the year. (Charles Schwab Press Room)
Investors have focused on two key drivers in this group: net interest revenue and trading. Schwab’s results revealed gains in both areas, despite a small miss on the top line compared to estimates.
The quarter comes amid a packed earnings calendar for brokers. Interactive Brokers posted a jump in fourth-quarter profit Tuesday, boosted by increased client margin loans and steady trading volumes, Reuters reported. (Reuters)
Margin lending, which involves borrowing against a portfolio to purchase additional securities, can boost brokers’ interest income as balances increase. Schwab reported a 34% jump in margin loan balances from a year ago, reaching $112.3 billion.
The “miss” headline won’t disappear. If rate cuts come sooner than investors anticipate, Schwab’s spread on client cash could shrink. Plus, a slowdown in trading after a busy period would weigh on transaction-linked revenue.
Traders have their eyes on two key dates: Forge Global’s shareholder vote on the merger set for Thursday, and the Fed’s policy meeting on Jan. 27-28, which could shift the rate outlook once more. (SEC)
